MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SSIPL RETAIL PRIVATE LIMITED |
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Formerly Known as : |
MOJA SHOES PRIVATE LIMITED |
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Registered Office : |
B1/F4, Mohan Co-operative Industrial Area, Main Mathura Road, New Delhi-110044 |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.10.1994 |
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Com. Reg. No.: |
55-61971 |
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TAN No.: [Tax Deduction & Collection Account No.] |
DELM08814B |
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PAN No.: [Permanent Account No.] |
AAACM2005L |
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CIN No.: [Company
Identification No.] |
U74899DL1994PTC061971 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Footwear, Shoe Uppers, Soles, Uppers. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 210000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track records. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
B1/F4, Mohan
Co-operative Industrial Area, Main Mathura Road, New Delhi-110044, |
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Tel. No.: |
91-11-42299999 |
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Fax No.: |
91-11-42299888 |
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E-Mail : |
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Head Office : |
99, Siddhartha Enclave, |
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Tel. No.: |
91-11-684 9034 / 683 8172 |
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Fax No.: |
91-11-684 9034 |
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Corporate Office : |
Shakti Complex, Samaypur, Near G T Karnal Bypass, |
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Tel. No.: |
91-11-6849034 |
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Factory 1 : |
Village Sersa, Kundli, Sonepat, |
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Tel. No.: |
91-11-911 70801 / 911 7828 / 911 70429 |
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Fax No.: |
91-11-778 1507 |
DIRECTORS
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Name : |
Mr. C Sinha |
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Designation : |
Manager |
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Address : |
75, |
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Name : |
Mr. Ashok Mathur |
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Designation : |
Director |
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Address : |
75, |
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Date of Birth/Age : |
19.07.1943 |
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Date of Appointment : |
05.10.1994 |
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Name : |
Mr. Dilip Mathur |
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Designation : |
Director |
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Address : |
18, |
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Date of Birth/Age : |
19.12.1946 |
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Date of Appointment : |
06.08.1995 |
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Name : |
Mr. Mahesh Nathani |
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Designation : |
Director |
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Address : |
3, |
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Date of Birth/Age : |
15.09.1940 |
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Date of Appointment : |
08.09.1995 |
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Name : |
Ms. Jaya Mathur |
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Designation : |
Director |
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Address : |
18, |
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Date of Appointment : |
10.02.2005 |
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Name : |
Ms. Tara Mathur |
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Designation : |
Director |
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Address : |
18, |
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Date of Appointment : |
10.02.2005 |
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Name : |
Ms. Priya Mathur |
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Designation : |
Director |
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Address : |
18, |
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Date of Appointment : |
10.02.2005 |
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Name : |
Mr. Abhay Soi |
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Designation : |
Additional Director |
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Address : |
K-25, South Extension II, New Delhi-110049 |
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Date of Birth/Age : |
19.08.1973 |
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Date of Appointment : |
18.02.2006 |
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Other Directorships : |
Halcyon Enterprises Private Limited Halcyon Resources and Management Consulting Private Limited Halcyon GB Holdings Private Limited Sierra Industrial Enterprises Private Limited Sports Station India Private Limited Revere Pentland Private Limited |
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Name : |
Mr. Cartlon Felix Pereira |
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Designation : |
Director |
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Address : |
72, Buenavista, Gen. J Bhosale Marg, Nariman Point, Mumbai-400021 |
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Date of Birth/Age : |
17.10.1967 |
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Date of Appointment : |
25.04.2006 |
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Name : |
Mr. Rishab Soni |
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Designation : |
Managing Director |
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Name : |
MR. Sunil Taneja |
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Designation : |
Director |
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Name : |
Mr. Lalit Kishore |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Ashok Mathur |
479190 |
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Ms. Divya Mathur |
10 |
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Mr. Dilip Mathur |
2381950 |
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Mr. Ravi Akhoury |
300000 |
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Mr. Mahesh Nathani |
236750 |
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Mr. B K Soni |
200 |
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Mr. Kiran Soni |
100 |
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Mr. Redhi Soni |
100 |
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Mr. Rishabh Soni |
100 |
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Mr. S Dewan |
100 |
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Mr. Sunil Taneja |
100 |
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Mr. R S Anand |
100 |
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Category |
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Percentage of
Holding |
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Foreign holdings |
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38.08 |
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Bodies corporate |
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7.94 |
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Directors or their relatives |
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53.98 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Footwear, Shoe Uppers, Soles, Uppers. |
PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Footwear |
pairs |
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7.200 million |
433838 |
GENERAL INFORMATION
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Bankers : |
v
Punjab National Bank v
Citi bank v
Standard Chartered Bank, Sansad Marg, v
Canara Bank, Sansad Marg Branch, |
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Facilities : |
Secured Loans
(as on 31.03.2005): (Rs. In
millions)
Unsecured Loans
: From Others : Rs.2.000 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Anubha & Raman Chartered Accountants |
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Address : |
E-375, 1st Floor, Greater Kailash 2, New Delhi-110048 |
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Tel No.: |
91-11-41724068 |
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Fax No.: |
91-11-41724067 |
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E-Mail: |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5500000 |
Equity Shares |
Rs.10/- each |
Rs.55.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5489736 |
Equity Shares |
Rs.10/- each |
Rs.54.897
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
33.987 |
33.987 |
38.990 |
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2] Share Application Money |
0.000 |
1.769 |
0.000 |
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3] Reserves & Surplus |
20.327 |
19.235 |
16.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
54.314 |
54.991 |
54.990 |
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LOAN FUNDS |
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1] Secured Loans |
88.894 |
64.428 |
57.221 |
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2] Unsecured Loans |
0.000 |
2.000 |
3.000 |
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TOTAL BORROWING |
88.894 |
66.428 |
60.221 |
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DEFERRED TAX LIABILITIES |
4.530 |
4.523 |
4.533 |
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TOTAL |
147.738 |
125.942 |
119.744 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
58.611 |
57.064 |
53.899 |
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Capital work-in-progress |
1.839 |
1.575 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
58.132
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60.724 |
49.939 |
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Sundry Debtors |
84.773
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59.444 |
48.119 |
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Cash & Bank Balances |
2.046
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3.518 |
3.133 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
7.423
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15.302 |
10.248 |
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Total
Current Assets |
152.374
|
138.988 |
111.439 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
60.343
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66.890 |
45.610 |
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Provisions |
4.743
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4.795 |
0.000 |
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Total
Current Liabilities |
65.086
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71.685 |
45.610 |
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Net Current Assets |
87.288
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67.303 |
65.829 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.016 |
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TOTAL |
147.738 |
125.942 |
119.744 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales |
331.772 |
267.791 |
NA |
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Other Income |
4.220 |
4.077 |
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Total Income |
335.992 |
271.868 |
NA |
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Profit/(Loss) Before Tax |
3.921 |
4.502 |
NA |
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Provision for Taxation |
2.830 |
1.267 |
NA |
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Profit/(Loss) After Tax |
1.091 |
3.235 |
NA |
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FOB VALUE |
0.759 |
5.677 |
16.177 |
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CIF VALUE |
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Plant and Machinery |
2.046 |
3.172 |
NA |
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Raw Material |
46.323 |
44.497 |
NA |
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Packing Material |
0.000 |
0.009 |
NA |
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Total Imports |
48.369 |
47.678 |
33.196 |
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Expenditures : |
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Cost of goods Sold |
274.811 |
221.712 |
NA |
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Administrative Expenses |
41.030 |
28.476 |
NA |
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Financial Charges |
6.349 |
8.121 |
NA |
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Depreciation |
9.881 |
9.057 |
NA |
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Total Expenditure |
332.071 |
267.366 |
NA |
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KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
0.32
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1.19
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NA
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Net Profit Margin (PBT/Sales) |
(%) |
1.18
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1.68
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NA
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.86
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2.30
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NA
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Return on Investment (ROI) (PBT/Networth) |
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0.07
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0.08
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NA
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Debt Equity Ratio (Total Liability/Networth) |
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2.83
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2.51 |
1.92 |
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Current Ratio (Current Asset/Current Liability) |
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2.34
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1.94 |
2.44 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
SSIPL RETAIL
PRIVATE LIMITED |
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Presented By |
COMPANY AND STANDARD CHARTERED BANK, |
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1) Date and description of instrument creating the change |
Letter of hypothecation of stocks and book debts dated 04.10.2005. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.10.000 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise whatsoever and all present and future book debts, outstanding moneys, receivables, claims and bills etc, shall be hypothecated to the bank by way of second charge on a pari passu basis. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest as may be determined by the bank from time to time |
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5) Name and Address and description of the person entitled to the charge. |
Standard Chartered Bank Sansad Marg, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
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Name of the company |
SSIPL RETAIL
PRIVATE LIMITED |
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Presented By |
ACANARA BANK, SANSAD MARG, |
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1) Date and description of instrument creating the change |
21.12.2005 Hypothecation agreement of goods and book debts Agreement for opening inland irrevocable letter |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.3.500 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Security in favour of the bank for bank having agreed to extent to the company L/C limit of favour of various authorities/ departments etc. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
All amounts payable under the LC/FLC (DA/DP) Limit of Rs.3.500 millions shall carry interest/ bank charges/ commission as may be prescribed by the bank from time to time |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank Sansad Marg Branch, Parliament Street, New Delhi-110001 |
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6) Date and brief description of instrument modifying the charge |
21.12.2005 Agreement Re: Collateral security Machinery vehicles Agreement Re: Collateral security (Book debts and stocks including work in progress/ inventory) |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The ILC/FLC (DA/DP) Limit of Rs.3.500 millions shall also be collaterally secured by the following : All plant and machinery, tools and accessories |
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Corporation identity number or foreign company registrations number of the company |
U74899DL1994PTC061971 |
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Name of the company |
SSIPL RETAIL PRIVATE LIMITED |
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Address |
B1/F4, Mohan
Co-operative Industrial Area, Main Mathura Road, New Delhi-110044, |
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This Form is for |
Modification of charge |
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Type of Charges |
Immovable property Book debts Movable property Floating charge |
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Particular of the charge holder |
Canara Bank Sansad Marg, New Delhi-110001 |
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Nature or description of the instrument creating charge |
Supplemental agreement, agreement regarding collateral security and letter
evidencing deposit of title deeds |
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Date of the instrument creating charge |
14.10.2006 |
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Amount Secure by the charge |
Rs,12.500 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest : As may be specified by the bank from time to time Terms of repayment On demand Margin 25% Extent and operation of the charge 100% Others The above is to secure OCC limit. |
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Particulars of the Property charged |
The whole of the borrower’s present and future stocks of raw
materials, goods in process of manufacture and all finished and manufacturing
goodsand articles lying at Plot No.75, Sirsa Road, P O Jati Kalan, Sonepat or
wherever else including those in course of transit All the borrowers prese3nt and future book debts. |
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Particulars of the present modification |
OCC limit enhanced from Rs.70.000 millions to Rs.78.000 millions
against first charge on stocks and book debts and collateral security of EMT of
property situated at Khewt No.71 Khasra No.75 Khata No.96 measuring 57 Kanal
3, Marla situated at Sersa, Kundli, Sonepat and all the oplant and
machineries |
INDUSTRY
Reservation of leather Industry for the small-scale sector has kept corporate
investment at bay. Companies that have grown, were already in this business and
have grown gradually over the years. Clocking up large volumes is a problem for
the small-scale sector for want of funds. Lack of volumes adversely affected
the development of support industry. For example, critical inputs for footwear
components, which goes into quality footwear, is never given the due emphasis.
For producing one pair of shoe, already ninety components are needed. It is
also a Labour intensive industry which, according to a rough estimate, provides
employment to about 3 million people in
Although there is a sea-change in the overall structure of the industry
with corporate entering the field and setting of the number of modern
production facility in different parts of the country, but due to the
reservation, poor supply of leather and continuous increases in price of
leather in International market, most of the corporate Players are focussing
more on the production of non-leather footwear. Therefore, the bulk of the
Industry output of leather footwear comes from the small Scale and cottage
sector.
Nearly five years back there was a craze amongst Leather footwear
manufacturing companies to enter into capital market. These funds were easily
available then because of rosy picture portrayed through ambitious projections.
Most of the companies were able to charge premium but now the Position has
become unhappy for the investors. Despite the companies going widely held the
management functioning did not change. These companies are still family managed
business.
Global developments are also expected to have their impact on the future
of the Indian Leather Industry. Currency devaluation of South East Asian
Countries. Has pleased this sector at a disadvantage. Since exports from these
countries have become much cheaper making it difficult for the Indian industry
to complete on the price basis.
BUSINESS
The company was formed with the main objects to carry on business as
manufacturer and dealers of all kinds of Shoes, and Shoe Uppers, Bags, Belts,
Leather and Leather Items.
Subject operates from caption owned office premises of area admeasuring
1200 sq.ft. which is situated in a residential area.
No further information could be available since management remained
non-cooperative during current investigation.
The address of the registered office fo the
company has changed from :
Shakri Complex Samaypur, Near G T Karnal
Bypass,
To :
B1/F4, Mohan Co-operative Industrial Area, Main Mathura Road, New
Delhi-110044,
Fixed assets :
v
Land
v
v
Cycle
v
Plant and Machinery
v
Motor Vehicle
v
Furniture and fixtures
v
Office equipments
v
Electrical installations last
v
Moulds
Contingent Liabilities :
|
|
31.03.2005 |
31.03.2004 |
|
Guarantees issued by bank against counter
guarantee given by the company |
13.080 millions |
11.600 millions |
|
Foreign letter of credit |
2.144 millions |
1.341 millions |
|
Inland letter of credit |
Nil |
Nil |
Website Details :
Press Release
May 19, 2006
With the Government acceeding to partial request of Foreign Direct Investments
(FDI) in retail to the tune of 51 percent, has drawn a few companies to venture
for foreign tie-up. Haryana-based Moja Shoes Pvt Ltd which manufactures premium sports and
lifestyle shoes for domestic and international markets, alongwith leading
international luxury goods brand - company, Louis Vuitton Malletier of France
and Spain based Lladro Commercial SA have submitted separate proposals for
Government approval.
This year in February, Government announced raising of FDI in the retail sector
for investment only in one brand, and so far these are the only companies who
have shown keen interest and begun formal negotiations with the Government.
Moja Shoes, Sonepat, Haryana has sought after consent to bring in FDI from
Equity Fund-1.
Meantime, the FDI inflow throughout financial year 2005-06 is estimated at
about US $8.3 billion, up 50 percent from $5.53 billion last financial year.
This comprises equity as well as reinvested proceeds and other capital.
According to the Commerce Minister Kamal Nath, FDI inflow into
FDI in the equity alone stood at $5.13 billion, which is the highest ever
inflow the country has got throughout the year and is 60 percent more than last
year's figure.
The subject company’s during their meeting held on 25.08.2006 approved
the scheme of Arrangement (herein after referred to as “Scheme”) There are five
Companies involved in the scheme as in sports Station (India) Private Limited.,
SSIPL Retail Private Limited, Sierra Industrial Enterprises Private Limited,
Revere Pentland Private Limited, and KNS Trading Private Limited. By virtue of the scheme, the ‘Non-Retailing
business and Nike Retail business’ of sports Station Private Limited comprising
of such assets, liabilities and employees and contracts as pertaining to or
relatable to this business be demerged into the Company and Sierra Industrial
Enterprises Private Limited and Revere Pentland Private Limited shall be merged
into the Company.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.95 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.55.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|